As in the AIFMD, planned changes in Switzerland encompass liability of Depot banks, a legal separation of ‘qualified investors’ from ‘mutual fund investors’, and mandatory supervision of managers.

The hope in Switzerland is that the revisions to domestic law will qualify the industry to market its non-Ucits funds freely in Europe, alongside EU rivals governed by AIFMD rules.

At least CHF469bn of Swiss funds could be affected. Out of a total ­collective investment, industry they are worth about CHF1.26trn. But practitioners say supervision and its costs will also mean small managers will close, migrate to larger houses or back to banks, or even relocate to centres such as London.

Switzerland’s asset managers are cautioning its authorities to tread carefully. Practitioners highlight the proposed changes – still up for round-table discussion in June – are even more strict than the EU laws.